TSP, Treasury Issue Reassurances on G Fund Disinvestment

March 13, 2019— Both the Treasury Department and the TSP have issued statements saying that a financial maneuver the Treasury recently used regarding the TSP government securities G fund will have no impact on investors.

In disinvestment, the Treasury in effect takes the G fund off the government’s books as debt owed, essentially freeing up an equivalent amount of money. The Treasury invoked that maneuver last week after a temporary suspension of the debt ceiling ended, while also using similar accounting maneuvers involving the federal retirement trust fund and certain securities issued to state and local governments. Those maneuvers will put off the need to raise the ceiling until around September.

“After the debt limit impasse has ended, the G fund is made whole,” the Treasury statement said. “Therefore participants in the Thrift Savings Plan who contribute to the G fund are unaffected.”